Report: Workforce, Cost of Business Priority Manufacturing Issues

Overcoming workforce challenges and navigating the high cost of doing business in Connecticut remain key obstacles to growth for manufacturers according to a new report. 

The 2024 Connecticut Manufacturing Report, produced by CBIA and affiliates CONNSTEP and ReadyCT, and made possible with the support of RSM, found that 80% of manufacturers are impacted by the state’s labor shortage. 

Released today at the 2024 Connecticut Manufacturing Summit in Hartford, the report also found that the cost of doing business in the state increased for 87% of manufacturers. 

Manufacturing leaders cite rising labor and supply costs, state mandates, and high taxes as the top factors driving cost increases.

Key Takeaways

• 80% of Connecticut manufacturers say it is difficult to find and retain workers
• The lack of skilled job applicants is the main factor hampering growth for 33%, along with the cost of living (20%)
• The cost of doing business is increasing for 87% of manufacturers
• 27% plan to grow their workforce in the next six months
• 65% reported profits in 2023, 21% posted losses, and 15% broke even
• 41% say the state’s business climate is static, 38% say it’s declining, and 5% say it’s improving

“This report underscores the need to address structural challenges keeping Connecticut from reaching its full economic potential,” said CBIA president and CEO Chris DiPentima.

“The need to grow Connecticut’s manufacturing workforce cannot be understated, and neither can the barriers hampering hiring efforts across the state.

“Connecticut’s manufacturers face an ever-shifting economic landscape, requiring them to navigate increasing demand along with workforce challenges, rising costs, onerous state mandates, and continued supply chain risks.

“As the report highlights, manufacturers are addressing these challenges and finding ways to thrive by investing in workforce development initiatives and embracing innovative practices and new technologies.

“The workforce shortage is further compounded by the state’s high cost of living, limited workforce housing, and a lack of affordable childcare options, all of which make it difficult to find and retain workers.”

The report highlights recommendations for these challenges, including the Office of Manufacturing’s Make It Here 2030 plan, a list of priorities to spur growth, and efforts to increase funding for the state’s Manufacturing Innovation Fund. 

In September, the CBIA Foundation for Economic Growth and Opportunity released Opportunity Connecticut: Reimagining Our Workforce, Economy, and Quality of Life. 

“It’s critical that we work together to find solutions that create sustained economic growth, improve manufacturing career pathways, and make Connecticut a more attractive and affordable place to live and work,” DiPentima said.

“The CBIA Foundation’s long-term strategic economic action plan features a series of recommendations to reimagine and grow Connecticut’s workforce, economy, and quality of life to provide opportunities for all residents.”

The information and data shared in the 2024 Connecticut Manufacturing Report was drawn from multiple sources, including a comprehensive June 11-July 18 CBIA survey of manufacturers, numerous state and federal agencies, and interviews with public and private sector manufacturing leaders.

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CBIA is Connecticut’s largest business organization, with thousands of member companies, small and large, representing a diverse range of industries from every part of the state. For more information, please contact Scott Beaulieu (860.244.1929).